Your Guide in The Jungle of Buzzwords

 As a my first post in this blog, I try to guide you through the highest trending buzzwords within digitization and business. 

When trying to understand trending technologies for digitization, you will encounter several amount of words and abbreviations that everybody assumes that you already know, and it may be embarrassing to ask what they really mean. After reading this post, my ambition is that you should at least understand the definition, explanation and know an example for each the most used buzzwords. So, that in the future, you can be confident that you understand what the tech-savvy entrepreneur is talking about when pitching the new app that will change your life.

Artificial Intelligence

Intelligence demonstrated by machines, unlike natural intelligence which is displayed by humans and animals. The theory and development of computer systems that are able to perform tasks that normally requires human intelligence, such as learning and problem solving. 

Artificial Intelligence, or AI, is based on the principle that human intelligence can be defined in a way that a machine easily can impersonate and execute, from the most simple to the more complex cases. AI is continuously evolving and improving to benefit many different industries. AI can be divided between Weak and Strong Artificial Intelligence.

Weak AI embodies a system designed to carry out one particular job. For example a computer that can play chess, or a personal assistant as Apple's Siri. 

Strong AI, are systems that can carry on the tasks considered to be human-like. This type of AI requires more complex and complicated systems. They are programmed to handle situations in which they might have to solve a problem without having a human intervene. For example a self-driving car.

Example:

Besides self-driving cars and chess playing computers, AI can be used to automate and improve several processes within a business. For example it can automate decision making in supply chain management.

Machine Learning

Machine Learning (ML) is the study of computer algorithms that improve automatically through experience. 

It is seen as a subset of AI. ML algorithms build a mathematical model based on sample data (training data) in order to make predictions or decisions without being explicitly programmed to do so. ML is often divided into Supervised and Unsupervised ML. 

Supervised learning algorithms build a mathematical model of a set of data that contains both the inputs and the desired outputs. The training data consists of a set of training examples. Through iterative optimization of an objective function, the algorithms learn a function that can be used to predict the output associated with the new inputs. In that way, the models can correctly predict new data outputs based on the known outputs from the training data.

Unsupervised learning algorithms take a set of data that only contains inputs, and find structure in the data. The algorithms learn from the test data that has not been labeled yet. So instead of learning how the input data should affect the output, the algorithm is learning how to identify commonalities in the data and react based on the presence or absence of such commonalities in each new piece of data.

Example:

Retail, E-commerce, and consumer analytics apply machine learning to forecast demand, optimize prices, segment customers, provide customer recommendations, detect and prevent fraud.

Robotics

The branch of technology that deals with the design, construction, operation and application of robots. The goal of robotics is to design intelligent machines that can help and assist humans in their lives and businesses while keeping everyone safe.

Robotics are based on the achievement of information engineering, computer engineering, mechanical engineering, electronic engineering among others. As AI and ML aims to build systems that can replicate human tasks, robotics do the same. However, robotics also includes the physical part of the replication, for example a physical machine that can ensemble parts of a vehicle. 

Example:

Robotics are being used within manufacturing to help increase productivity and efficiency while lowering the costs of production. Many of these robots collaborate with human workers to perform repetitive, monotonous or intricate tasks under the human worker's governance and control.

Big Data

Extremely large data sets that may be analysed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions. These data sets are typically too large or complex to be dealt with by traditional data-processing application software (Excel for example).

In today's society where we spend several hours per day on the internet, massive amount of data is being generated about our interests, habits and behavioral patterns that can be analysed for analytic purposes. Current usage of the term Big Data tends to refer to the use of predictive analytics and user behavior analytics. These analytics of big data sets can find new correlations to spot business trends, prevent diseases, combat crime among others. 

Big Data uses mathematical analysis, optimization, inductive statistics and concepts from nonlinear system identification to infer laws from large sets of data with low information density to reveal relationships and dependencies to perform predictions of outcomes and behaviors.

Example:

Coca-Cola uses Big Data analytics to increase their customer retention. They are capturing as much customer information as they can through various channels which they use for adjusting their approach to make sure the customers continue to buy their products.

Internet of Things (IoT)

The interconnection of computing devices in everyday objects via the internet, enabling them to send and receive data.

IoT is most commonly known as products pertaining to the concept of "smart homes", including devices and appliances that support one or more common ecosystems, and can be controlled via devices associated with that ecosystem, such as smartphones and smart speakers. A complete IoT system integrates four distinct parts: sensors, connectivity, data processing and a user interface. The sensors are collecting data from their environment. Through the connectivity, the collected data is sent to the cloud. The connectivity to the cloud can be through cellular, satellite, WiFi, Bluetooth or directly connected to the internet via ethernet. Once the data have arrived in the cloud, software performs some kind of processing on it. Lastly, the data is being made useful for the end-user, this could be via alerts or the user could proactively check on the system. Some actions with the data can be performed automatically with the use of AI, instead of waiting for the end user to take action.

Example:

Wearable devices are often installed with sensors and software which collect data about the users, this data is later processed to extract essential insights about the user. This often covers fitness, health and entertainment. 

Block-chain

A block-chain is a decentralized database that is shared across a network of computers. Once a record has been added to the chain, it is very difficult to change. Bloch-chains have been used to underpin cryptocurrencies like bitcoin, but there are many other possible uses for the block-chain.

This is how a block-chain works:

First, a trade is being recorded. The record lists the details, including a digital signature from each party. Then, the record is being checked by the network. The computers in the network, "nodes", check the details of the trade to make sure it is valid. The records that becomes accepted by the network are added to a block. Each block contains a unique code called a hash. It also contains the hash of the previous block in the chain. This block is then being added to the block-chain.

As this database is decentralized, trust becomes an issue. Since the members are anonymous, there is no way to know they are trustworthy.

Example:

Block-chain can be used a lot in supply chains. Recording trades on a block-chain offers a way to check the history of a product.

Smart Contracts

A smart contract is a self-executing contract with the terms of the agreement being directly written into lines of code. These contracts exists on a block-chain network. The code controls the execution of the contract, and transactions are traceable and irreversible.

Smart contracts permit trusted transactions and agreements to be carried out among anonymous parties without the need for a central authority, legal system, or external enforcement mechanism. Smart contracts does not necessarily constitute a valid binding agreement according to law. Some legal academics claim that smart contracts are not legal agreements, but rather means of performing obligations deriving from other agreements such as technological means for the automation of payment obligations or obligations consisting in the transfer of tokens or cryptocurrencies.

Example:

A smart contract can be created when two parties enter an agreement where they want the desired outcome to be executed automatically as soon as the prerequisites are being met.

Cryptocurrencies

A digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. Many cryptocurrencies are decentralized networks based on block-chain technology.

Cryptocurrencies are systems that allow for the secure payments online which are denominated in terms of virtual "tokens", which are represented by ledger entries internal to the system. The main advantage of cryptocurrencies is that a transfer of funds between two parties, do not need any trusted third party. It is common that users have a "wallet" or account address, which has a public key and a private key. The private key is only known by the owner of the wallet, and is used to sign transactions.

The main disadvantage is that the anonymous nature of cryptocurrency transactions makes them well suited for a hos of illegal activities.

Example of cryptocurrencies:

Bitcoin, Ethereum, Litecoin, Namecoin and EOS.

Industry 4.0

Industry 4.0 is to represent the fourth revolution that has occurred in manufacturing. This revolution will take what was started in the third revolution with the adoption of computers and automation and enhance it with smart autonomous systems fueled by data and machine learning.

The computers are now being connected and communicate with one another to ultimately make decision without human interfering. As a result of the support of smart machines that keep getting smarter as they access more data, the factories will become more efficient and productive and less wasteful. The bottom line of Industry 4.0 is the network of these machines that are digitally connected with one another and create and share information to improve productivity and minimize costs.

Web 2.0

Web 2.0 is the term used to describe a variety of web sites and applications that allow anyone to create and share online information or material they have created. A key element of the technology is that it allows people to create, share, collaborate and communicate.

What makes Web 2.0 differ from other types of websites is that it does not require any web design or publishing skills to participate, which makes it easy for people to create and publish or communicate their work to the world

Examples:

Wikis, Blogs, Social medias and Podcasting.

Augmented Reality (AR)

AR capabilities layer the digital information in some form or another atop the analog world in which we live. It is a technology that enhances or augments your experience of the world around you. It is the real-time use of information in the form of text, graphics, audio and other virtual enhancements integrated with real-world objects.

One of the most known examples of AR is the online game Pokemon Go, where users are allowed to catch virtual Pokemon that are hidden throughout the map of the real world. It uses real locations to encourage players to far and wide in the real-world to discover Pokemon. The game enables the players to search and catch more than a hundred creatures as they move in their surrounding.

Virtual Reality (VR)

VR is the use of technology to create a simulated environment. Unlike traditional user interfaces, VR places the user inside an experience. Instead of viewing a screen in front of them, users are immersed and able to interact with 3D worlds.

VR is most used for entertainment purposes in applications but can also be used for plenty of other purposes. In social sciences and psychology, VR provides a cost-effective tool to study and replicate interactions in a controlled environment. VR programs are also being used in the rehabilitation processes with elderly individuals that have been diagnosed with Alzheimer’s disease. VR can also simulate real workspaces for workplace occupational safety and heath purposes. As you might have figured out right now, there are plenty of purposes in different industries for this technology.

5G

5G is the next generation wireless network technology that is expected to change the way people live and work. It will be faster and able to handle more connected devices than the existing 4G LTE network, improvement that will enable a wave of new kinds of tech products.

The benefits of this new technology are expected to fuel transformative new technologies, not just for consumers but also for businesses, infrastructure, defense applications and the society as a whole. The most discussed benefit with 5G is related to speed, but there are other perks as well. 5G will have better bandwidth, meaning it can handle many more connected devices than previous networks. It will also reduce latency, the time it takes for a connected device to make a request from a server and receive a response, to almost zero.

Anything "as a Service" (XaaS)

A collective term that refers to the delivery of anything as a service. It recognizes the increasing number of products, tools and technologies that vendors now deliver to users as a service, rather than provide locally or on-site within an enterprise.

The most common types of XaaS are related to Cloud Computing where we separate the three main cloud computing models as Software, Platform and Infrastructure as a Service. This will be explained in the next section.

Cloud Computing

Cloud Computing means storing and accessing data and programs over the internet instead of your computers hard drive. Ultimately, the cloud is merely a metaphor for the internet.
Most of us have experienced using the cloud, even though we might not have been aware of it. Three of the most commonly used examples of cloud are Google Drive, Apple iCloud and Dropbox.

As mentioned earlier, we usually split cloud computing into three main models:
Software as a Service (SaaS) – A software distribution model in which a third-party provider hosts applications and makes them available to customers over the internet (Salesforce, Concur as examples).
Platform as a Service (PaaS) – A model in which a third-party provider hosts application development platforms and tools on its own infrastructure and makes them available to customers over the internet (Heroku, Google App Engine as examples).
Infrastructure as a Service (IaaS) – A model in which a third-party providers hosts servers, storage and other virtualized compute resources and makes them available to customers over the internet (AWS, Microsoft Azure as exapmles).

We can also separate cloud computing based on its deployment type: Public, Private and Hybrid. Where the public cloud is available for the masses, private is usually within a single organization, and hybrid is a mic of them both.

Edge Computing

Edge Computing is the practice of capturing, processing and analyzing data near where it is created. It is already in use all around us and have been explained in different versions in this very post. From the wearable on your wrist, to the computers parsing intersection traffic flow, these devices are capturing, processing and analyzing data in their environment.

Edge computing is the science of having the edge devices do this work with the data without the need for the data to be transported to another server environment. This type of computing is what enables IoT for example.

Quantum Computing

 

A quantum computer is a type of computer that uses quantum mechanics so that it can perform certain kinds of computation more efficiently than a regular computer.

Regular computers stores information in a series of 0's and 1's, each unit in this series of 0's and 1's is called a bit. A quantum computer does not use bits to store information, instead it uses something that is called qubits. Each qubit can not only be set to 1 or 0, it can also be set to 1 AND 0. Which means - in extremely simple terms - if a regular computer would try to find its way out of a maze, it will try every single branch in turn, ruling them all out individually until it finds the right one. While the quantum computer can go every path of the maze at once, and thereby find the right path very faster than a regular computer.

----------------------------------------------------------------------------------------------------------------------------

I hope this post provides you a basic understanding, and increasing interest in emerging technologies. I know that this post is very low-level, but I believe it is a good start to make sure that we all are on track on what is happening in the business world regarding technological improvements. In future posts will I dig deeper in different business process, technologies and solutions that improve the way we are doing business.

Until next time,

Teodor

Sources:

https://www.wired.com/

https://www.forbes.com/#5aa01d9d2254

https://www.investopedia.com/

https://www.wikipedia.org/